Ranbaxy to pay $420,000 to Idaho state to settle complaints

Ranbaxy Laboratories will pay northwestern US state Idaho nearly $420,000 to settle civil and criminal complaints of selling drugs of inferior strength, purity or quality.

The alleged 26 sub-standard generic drugs were made at Ranbaxy's factories in Paonta Sahib and Dewas in India.

Idaho had joined several states and the US government in alleging that the Indian drugmaker's products manufactured between April 2003 and September 2010 did not meet US Food and Drug Administration (FDA) standards and caused Medicaid to pay fraudulent claims.

Medicaid is a US health programme for families and individuals with low income and resources.

"Taxpayers expect their tax dollars to be used to pay for a legitimate service," Idaho Attorney General Lawrence Wasden said in a press release. "This settlement reflects our resolve to address losses to the Idaho Medicaid programme caused by individuals and companies."

Idaho's share of the settlement is $419,914. About half of that will go to Idaho Medicaid as restitution, and about half will go to Idaho's general fund.

Ranbaxy had earlier agreed to a $500 million settlement with the federal and state governments. About $266.7 million of that will go to Medicaid programmes that are jointly funded by federal and state taxes.

The company also pleaded guilty to seven felony counts of violating the US Food, Drug and Cosmetic Act and agreed to pay $150 million in criminal fines and forfeitures.

With inputs from IANS